Fair allocation of transmission power losses

In this paper, the issue of how transmission power losses should be allocated is addressed. First, it is shown that existing methodologies allocate interaction components regardless of the size of the involved partners. Then, several alternatives to split those terms are suggested which somehow take into account the relative contribution of each transaction. Although the ideas are presented by resorting to unbundled branch power flows, the proposed schemes are applicable on a nodal basis. A real example is finally included showing that the total losses assigned to a transaction may differ significantly depending on the allocation methodology adopted